NEW DELHI: Japanese carmaker Nissan Motors on Wednesday launched its low-cost Datsun brand in India by rolling out its GO hatchback at an aggressive price to revive its fortunes after a tough year.

Priced aggressively at Rs 3.12 lakh onwards, the GO will challenge Maruti Alto and Hyundai Eon at the entry level segment with a bigger 1,200-cc engine, more cabin space and superior mileage.

"We are facing some hard times in India.... We have not been able to achieve our internal sales targets, but should see some revival from the Datsun brand," said Kenichiro Yomura, president & CEO at Nissan India.

Nissan's sales declined 10% year-onyear to 31,309 cars in the first 11 months of the current fiscal. The company expects Datsun to help it make a comeback by generating a third of its future sales.

With a marginal 1.4% share of the local passenger vehicle market in the April-February period, Yomura said that the target for the 10% market share in India by fiscal 2017 could be delayed, though the debut of Datsun marquee would render some impetus.

GO will be followed by a bigger wagon, GO+, later this year. With its aggressive pricing, GO is targeting first-time car buyers who account for around 40% of passenger car sales in the country.

Analysts tracking the sector, however, said Nissan might find it hard to take on established players. "Launching a product in the segment which is already being penetrated by two established players — Maruti Suzuki and Hyundai Motors — with vital reach will be like an uphill task for Datsun in this current sluggish market," said Amit Kaushik, principal analyst (autos) at global consultancy IHS Automotive. "We don't see 'GO' as a significant intimidation to the established products in the near-term," he said.

With the launch of GO, Nissan has resurrected the Datsun brand after almost three decades, and it's expanding its dealership network to ensure its success. "We plan to have at least 145 dealerships across India by the end of 2014," Yomura said. Nissan India plans to increase its dealership network to 300 in the long-term.